Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 2962 entitled:

begs leave to report as follows:

The purpose of this measure is to amend sections of Hawaii's condominium law and to amend sections of chapter 514C, Hawaii Revised Statutes to make these sections consistent with the condominium law.

Testimony in support of this measure was submitted by the Community Associations Institute, Hawaii Chapter, and an individual. Testimony in opposition to this measure was submitted by the Hawaii Council of Associations of Apartment Owners and the Hawaii Independent Condominium and Cooperative Owners. Comments were submitted by the Real Estate Commission's Condominium Review Committee.

Your Committee finds that the parties affected by this measure are in discussion. Your Committee ask that the affected parties continue to dialogue. Your Committee has amended this measure by amending section 12 of this measure to provide that it applies to projects over 100 units, not just those of 100 units, and to change the percentage from seventy-five to seventy per cent for nonresident owners and by changing the effective date to July 1, 2050. Your Committee has also amended this measure by making technical, nonsubstantive amendments.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2962, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2962, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.